Post-Acquisition Performance Poised for Global Accounting Update

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The International Accounting Standards Board proposed changes to corporate acquisition accounting designed to tell investors more about how well firms perform after being bought. Under the proposals published Thursday, companies must explain in their financial statements why they bought a firm, the key objectives, and how well the acquisition performed against those targets. • IASB chair Andreas Barkow in a statement said more transparency about acquisitions “is critical to investor confidence.” • The board asked for public comments by July 15 on the draft changes to its international financial reporting standard known as IFRS 3 Business Combinations. The board previously decided ...

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